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Khadi clocks Rs 1.15 lakh Cr turnover in FY22; Beats all FMCG companies

Countering the economic distress, a large number of rural youth took up self-employment and manufacturing activities under KVIC’s PMEGP which increased the production in the village industry sector
Khadi clocks Rs 1.15 lakh Cr turnover in FY22; Beats all FMCG companies
Khadi clocks Rs 1.15 lakh Cr turnover in FY22; Beats all FMCG companies (Representational image: RM archive)

Witnessing a growth of 20.54 per cent, Khadi and Village Industries Commission (KVIC) has clocked a massive turnover of Rs 1.15 lakh crore in the financial year 2021-22. This makes KVIC the only FMCG (fast-moving consumer goods) company in India to have recorded a turnover of Rs 1 lakh crore. In FY 2020-21, the overall turnover of KVIC stood at Rs 95,741.74 crore.

Compared to the year 2014-15, the overall production in Khadi and Village Industries sectors in 2021-22 has registered a whopping growth of 172 per cent while the gross sales during this period increased by over 248 per cent. This massive turnover of KVIC has come despite a partial lockdown in the country in the first three months, i.e. April to June in 2022, due to the second wave of the Covid-19 pandemic.

Looking at the performance in the last one year, the biggest impact can be seen in the Khadi sector which has registered a growth of 43.20 per cent from Rs 3,528 crore in 2020-21 to Rs 5,052 crore in 2021-22. In the last 8 years, i.e. from 2014-15, the production in the Khadi sector in 2021-22 has increased by 191 per cent, while the Khadi sales have increased exponentially by 332 per cent.

On the other hand, the turnover in the village industries sector alone has reached Rs 1,10,364 crore in 2021-22, as compared to Rs 92,214 crore in the previous year. In the last 8 years, the production in the village industries sector in 2021-22 has increased by 172 per cent, while the sales have increased by 245 per cent.

Vinai Kumar Saxena, Chairman, Khadi and Village Industries Commission attributed Khadi’s phenomenal growth to the constant support of Prime Minister Narendra Modi to promote Khadi in the country. At the same time, innovative schemes, creative marketing ideas and active support from various ministries have also added to the Khadi’s growth in recent years. “Prime Minister’s repeated appeals to achieve self-reliance by promoting ‘Swadeshi’ and particularly ‘Khadi’ has done wonders. Today Khadi stands far ahead of all FMCG companies in the country. By employing new scientific methods and diversifying Khadi’s product range, KVIC has succeeded in achieving such massive growth which no other FMCG company can match,” he said.

Notably, people have responded enthusiastically to the Prime Minister’s calls for ‘Aatmanirbhar Bharat’ and ‘Vocal for Local’. In the last couple of years, KVIC’s main focus has been to create sustainable employment for artisans and unemployed youth. Countering the economic distress, a large number of rural youth took up self-employment and manufacturing activities under KVIC’s Prime Minister Employment Generation Programme (PMEGP) which increased the production in the village industries sector. At the same time, the sales of Khadi and village industry products grew significantly. This is also evident from the fact that Khadi’s single-day sale at its flagship store at Connaught Place in New Delhi also reached the all-time high of Rs 1.29 crore on October 30, 2021.

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